Business Analysis of Citigroup

CITIGROUP

Business Overview

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. In addition, this segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2016, it operated 2,649 branches in 19 countries. The Citi Holdings segment provides consumer loans; and portfolio of securities, loans, and other assets. Citigroup Inc. was founded in 1812 and is based in New York, New York.

Citigroup

Business Analysis of Citigroup

The Banking Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Citigroup compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Citigroup to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Citigroup with an interactive chart.

Revenue Growth: Citigroup reported a revenue growth of -8.5% year-on-year during 2016. Banking Industry grew at 1.5% in the same period

COGS share of Revenues: As a percentage of revenue, Citigroup spent 10.0% of its total revenues on COGS. Banking industry average (COGS share of revenue) in the same period was 1.5%

R&D share of Revenues: Citigroup R&D share of Revenues details are not available because either company does not share the data or we do not have it

SG&A share of Revenues: As a percentage of revenue, Citigroup spent 59.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Banking industry average SG&A spending in the same period was 53.7%

Inventory share of Revenues: Citigroup Inventory share of Revenues details are not available because either company does not share the data or we do not have it

Accounts Payable share of Revenues: As a percentage of revenue, Citigroup invested 81.8% of its total revenues on Accounts Payable (A/P) Banking industry average Accounts Payable investment in the same period was 54.0%

Accounts Receivable share of Revenues: As a percentage of revenue, Citigroup invested 41.3% of its total revenues on Accounts Receivable (A/R). Banking industry average Accounts Receivable investment in the same period was 30.1%

PP&E share of Revenues: Citigroup PP&E share of Revenues details are not available because either company does not share the data or we do not have it

Intangibles share of Revenues: As a percentage of revenue, Citigroup invested 40.6% of its total revenues on Intangibles. Banking industry average Intangibles investment in the same period was 60.1%

Net Margins: Citigroup Net Margins in the year 2016 were 21.3%. Banking industry average Net Margins in the same period were 23.5%

Sector and Industry Association of Citigroup

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Industry Ranking of Citigroup

With $69.9 billion revenues, Citigroup ranked number 4 of all the companies in the US Banking industry. There were a total of 179 public companies in the US Banking industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Banking industry by revenues during 2016 were:

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Industry Peers and Competitors of citigroup

JPMorgan Chase & Co. with $96 billion revenues in the year 2016 was the number 1 Banking company. Read this report to know the top competitors of JPMorgan Chase and identify growth and cost optimization opportunities of JPMorgan Chase

Wells Fargo & Company with $84 billion revenues in the year 2016 was the number 2 Banking company. Read this report to know the top competitors of Wells Fargo and identify growth and cost optimization opportunities of Wells Fargo

Bank of America Corporation with $84 billion revenues in the year 2016 was the number 3 Banking company. Read this report to know the top competitors of Bank of America and identify growth and cost optimization opportunities of Bank of America

US Bancorp with $20 billion revenues in the year 2016 was the number 5 Banking company. Read this report to know the top competitors of US Bancorp and identify growth and cost optimization opportunities of US Bancorp

PNC Financial Services Group, Inc. with $15 billion revenues in the year 2016 was the number 6 Banking company. Read this report to know the top competitors of PNC Financial Services Group and identify growth and cost optimization opportunities of PNC Financial Services Group

BB&T Corp with $10 billion revenues in the year 2016 was the number 7 Banking company. Read this report to know the top competitors of BB&T and identify growth and cost optimization opportunities of BB&T

Revenues Analysis

This report provides the last five years revenues and revenue growth of Citigroup Inc (C) from 2012 to 2016. Citigroup generated a total of $69.9 billion revenues during 2016. Citigroup reported a revenue growth of -8.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

This report provides the last fifteen years revenues and revenue growth of Citigroup Inc (C) from 2002 to 2016. Citigroup generated a total of $69.9 billion revenues during 2016. Citigroup reported a revenue growth of -8.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

This report provides a comparison of Citigroup Inc (C) revenue growth with Banking industry growth during the last five years from 2012 to 2016. Citigroup reported a revenue growth of -8.5% year-over-year during 2016. The Banking industry growth was 1.5% year-over-year during 2016. Citigroup growth was slower than the industry during 2016.

Profit Analysis

This report provides the last five years net profit and net margin of Citigroup Inc (C) from 2012 to 2016. Citigroup reported a total net income of $14.9 billion during 2016. Citigroup generated a total of $69.9 billion revenues during 2016. Citigroup net profit margin was 21.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

This report provides the last fifteen years net profit and net margin of Citigroup Inc (C) from 2002 to 2016. Citigroup reported a total net income of $14.9 billion during 2016. Citigroup generated a total of $69.9 billion revenues during 2016. Citigroup net profit margin was 21.3% dur